Indian Biomass and Briquette Market: Examining Price Movements and the Expanding Transition to Biofuel Options
The renewable energy domain in India is witnessing rapid evolution, with biomass emerging as a key contributor in the nation’s sustainable energy mix. The rising adoption of biomass briquettes and other forms of bio-based fuel has created a dynamic market for producers and industrial buyers. In recent years, the briquettes price per kg has become a crucial factor shaping industrial energy preferences, especially as industries look for low-cost, environment-friendly options to coal and other fossil fuels.
The rising awareness of clean fuel usage has driven the demand for briquette coal—a compressed, carbon-neutral energy source derived from agricultural waste, sawdust, and other organic residues. As India continues to pursue its renewable energy targets, bio-based energy sources are playing a crucial role in cutting greenhouse gas output and promoting decentralised energy generation, particularly for rural production sectors.
Defining Biomass and Its Importance in India’s Power Mix
Biomass in India comprises a wide array of natural residues available from agriculture, forestry, and organic waste streams. With over 500 million tonnes of agricultural residue generated annually, the country holds considerable potential for biomass utilisation in power generation and thermal energy. This resource can be converted into various forms of energy such as briquettes and pellets as well as bio-oil and biogas, thereby providing sustainable alternatives to coal and petroleum-based fuels.
Industries needing consistent thermal output benefit greatly from biomass fuel—such as cement plants, textile mills, and food factories. These sectors have increasingly turned to bio mass briquettes as a clean-burning, cost-efficient replacement for traditional fuels. In addition to minimising pollution, the widespread use of biomass creates rural job opportunities and utilises waste effectively that would otherwise go to waste.
How Briquette Coal Is Made and Its Composition
Briquette coal is created by compacting dry biomass such as crop residues, wood shavings, and other biodegradable waste into compressed shapes of uniform size. The process eliminates moisture and enhances the calorific value, making it suitable for high-demand industrial use. These briquettes are compact, easy to handle, and ensure clean combustion, ensuring eco-friendly burning and less residue.
Depending on the feedstock, briquette coal can be categorised into biomass briquettes, bio coal, or mixed blends. While pure biomass briquettes use only non-carbonised residue, carbonised briquettes often contain a small portion of carbon matter for higher combustion efficiency. Their heating value typically ranges from 3500 to 5000 kcal/kg, depending on the feedstock type and compaction level.
Briquette Price Trends Across India
The cost of briquette fuel per kilogram in India is influenced by several core variables, including raw material availability, regional demand, transportation costs, and seasonal variations. In agricultural states such as Maharashtra, Punjab, Haryana, and Uttar Pradesh, the ready supply of biomass feedstock keeps manufacturing affordable. In contrast, urban and industrial areas where raw materials need to be transported from rural regions tend to experience increased costs.
On average, the price of biomass briquettes ranges between ?6 and ?10 per kilogram, depending on heat value and quality control. During peak agricultural seasons, when supply is abundant, prices tend to stabilise. However, in off-seasons or when transport challenges arise, prices may fluctuate upward from supply constraints. Despite these variations, briquettes remain a cost-effective fuel compared to traditional coal, which can cost almost double per energy output.
How Biomass Briquettes Differ from Traditional Coal
The substitution of coal with bio mass briquettes offers multiple advantages in terms of clean energy transition and cost control. Briquettes generate minimal smoke and ash, which helps industries meet environmental regulations. Their even density promotes stable burning, reducing equipment maintenance and improving energy output. Moreover, briquettes are derived from sustainable sources, as the carbon dioxide released during combustion is reabsorbed by new plant growth.
In contrast, coal burning leads to higher carbon levels, climate damage and ecological loss. Its extraction and transportation processes are also highly polluting and resource-draining. By replacing even a portion of coal demand through renewable substitutes, India can significantly cut its carbon footprint while supporting rural fuel economies.
Biomass in India: Policy Support and Market Growth
Government initiatives have been instrumental in advancing renewable biofuel markets. Policies promoting clean fuel adoption and emission reduction have encouraged industries to adopt biomass-based fuels. The national renewable energy authorities has supported the development of bioenergy projects and briquette industries through grants and funding initiatives.
Additionally, carbon trading programs and RPO compliance rules have provided financial incentives for companies using biomass fuels. With the government’s focus on a carbon-neutral India by 2070, biomass energy is set to become a cornerstone of India’s green growth plan. The creation of online biofuel exchanges and transparent trade systems has further simplified procurement and pricing, enabling buyers and sellers to connect more efficiently.
Challenges Facing the Biomass Briquette Market
Despite its promising growth, the biomass briquette sector faces several challenges. Seasonal variations in raw material supply can lead to inconsistent production levels. The absence of uniform product standards also reduces buyer confidence. In some regions, logistical bottlenecks and transportation costs increase the end-market expense, making coal a temporary but less sustainable choice.
Furthermore, low awareness among industrial users remains a barrier to widespread adoption. Addressing these issues through enhanced production systems and policy support could help strengthen sectoral confidence and expansion.
Economic and Ecological Value of Biofuel Briquettes
The adoption of bio mass briquettes provides both commercial and green advantages. For industries, transitioning to biomass lowers operational expenditure and emission costs. On a national scale, it supports local economies by creating demand for agricultural residues and offering new income streams for farmers. Environmentally, briquettes limit forest depletion, lower carbon impact, and control air pollution.
As the market expands and develops, innovations in briquetting technology, moisture control, and waste utilisation are expected to make production smoother and cost-effective. The establishment of decentralised briquette production units near agricultural zones can further stabilise supply throughout the year.
Conclusion
India’s biomass sector represents a critical opportunity for achieving sustainable energy goals while addressing rural economic development. The increasing demand for bio coal and bio mass briquettes reflects a country-wide movement toward sustainable energy use. Although the briquettes price per kg may differ by area and timing, the sustained advantages surpass temporary challenges. With continued investment, policy support, and innovation, biomass will play a briquette coal defining role in India’s clean energy era.